ACCOUNTS RECEIVABLE WORK IN PROCESS INV DL HRS RATE DL DL $120 101 $0 ACCOUNTS PAYABLE COST OF SERVICES ACCOUNTING REVENUE FO FO $104 $0 DLH-15 TOTAL OFFICE OVERHEAD $0 SALARIES PAYABLE DL HRS RATE 102 DL $120 $0 FO $104 $0 DLH-22 TOTAL $0 TRANSACTIONS FOR NORA'S TAX SERVICE DL HRS RATE 103 PREPAID INSURANCE DL $120 $0 FO $104 $0 EQUIPMENT ACC. DEPR. EQUIP DLH=14 TOTAL DL HRS RATE 104 DL $120 $0 FO $104 $0 DLH=16 TOTAL $0 1 DL HRS RATE 105 DL $120 $0 FO $104 $0 DR CR DLH=30 1 Nora started her tax service on January 1, 2019. She began by budgeting the office overhead costs projected for the first year: Office Rent $36,000 Indirect Labor--secretarial and janitorial 100,000 Photocopying costs 8,000 Computer leasing costs (hardware and software) 24,000 Utilities 30,000 Insurance 10,000 Total Estimated Office Overhead for 2019 $208,000 2 Nora plans to work fifty 40-hour weeks in 2019, for a total of 2,000 direct labor hours. Calculate the Predetermined Overhead Rate = Total Estimated Overhead / Estimated DL Hours: POR = $104 3 Nora set her Direct Labor Rate at $120 per hour. Each job cost sheet indicates the number of direct labor hours worked by Nora. Fill in the HOURS COLUMN for DL and FO; the job cost sheets have formulas to add these figures up.